Market will Develop for Gas with Very Low Methane Intensity – Project Canary CEO

S&P Global Market Intelligence

August 22, 2023

In the coming years, customers in the market for responsibly sourced gas will likely develop a preference for natural gas with a methane intensity below the current industry standard, according to Project Canary PBC CEO Chris Romer.

The methane intensity standard that has emerged for gas production is 0.2%, which means that no more than that percentage will be lost through methane emissions. Members of the industry's Oil and Gas Climate Initiative set a 0.2% methane intensity target, and the US Inflation Reduction Act used this threshold as a baseline for its methane emission fee for oil and gas producers.

Romer said he believes that there will be a "very robust market" for gas supplies with a methane intensity below 0.2%. At some point, gas supplies with a higher methane intensity will likely trade at a discount, he said during an Aug. 16 presentation at the LDC Gas Forums Rockies and West conference in Denver.